Bjorn Borg AB (BORG) AI Stock Analysis

• Market Cap: kr1.52B
• Dividend Yield: 4.98%
• Average Volume (3M): 12.04K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.50
• Revenue Growth: 9.20%
• EPS Growth: 11.72%
• Country: SE
• Employees: 168
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 1.47
• Shares Outstanding: 25,148,384
• 10 Day Avg. Volume: 9,490
• 30 Day Avg. Volume: 12,039
• PEG Ratio: -4.15
• Price to Book (P/B): 3.61
• Price to Sales (P/S): 1.31
• P/FCF Ratio: 20.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: kr68.00 ▲(12.96% Upside)

Bjorn Borg AB's overall stock score is driven by its strong financial performance and attractive valuation. The technical analysis suggests a neutral to slightly bearish short-term outlook. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

The robust revenue growth rate indicates strong demand and market presence, which is crucial for sustaining long-term business expansion and competitiveness.

Profitability

High profitability margins suggest effective cost management and pricing power, supporting sustainable financial performance and shareholder value.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic fluctuations.

Negative Factors

Cash Flow Generation

Declining free cash flow growth can limit the company's ability to fund operations, invest in growth, and return capital to shareholders, posing a risk to long-term financial health.

Operating Cash Flow Conversion

Low cash conversion efficiency indicates challenges in turning profits into cash, which may affect liquidity and the ability to meet financial obligations.

Gross Profit Margin Decline

A declining gross profit margin suggests potential cost pressures or pricing challenges, which could impact profitability if not addressed.

Bjorn Borg AB Business Overview & Revenue Model

Company Description

Björn Borg AB (publ), together with its subsidiaries, engages in the design, development, production, wholesale, and retail of underwear, sports apparel, footwear, bags, eyewear, and fragrances under the Björn Borg brand. The company operates through Wholesale, Consumer Direct, Distributors, and License segments. It offers underwear for men, women, and kids, as well as pajamas and socks through independent retailers, fashion and sports chains, department stores, Björn Borg stores, and e-commerce sites; and clothing collections for women and men through sports retailers, sports chains, department stores, Björn Borg stores, and e-commerce sites. The company also provides leisure and sports shoes for men and women through independent shoe retailers, shoe and sports chains, department stores, e-tailers, and Björn Borg stores, as well as through www.bjornborg.com; sports bags, backpacks, and suitcases, as well as wallets, gloves, and belts through bag retailers, sports shops, retail chains, department stores, shop-in-shops, Björn Borg stores, and e-commerce sites; and backpacks, gym bags, and duffle bags, as well as wallets, gloves, and belts through luggage and sporting goods shops, retail chains, department stores, shop-in-shops, Björn Borg stores, and e-commerce sites. Further, it offers spectacle frames and sunglasses through the licensee's distribution organizations, fashion stores, department stores, and Björn Borg stores. The company sells its products in Sweden, the Netherlands, Finland, Germany, Belgium, Norway, Denmark, England, Switzerland, the United States, Slovenia, France, and Canada. As of December 31, 2020, it operated 32 Björn Borg stores, including 29 group owned stores. The company was founded in 1984 and is headquartered in Solna, Sweden.

How the Company Makes Money

Bjorn Borg AB generates revenue through multiple streams, primarily by selling its products through a combination of direct-to-consumer channels and wholesale distribution. The company's key revenue streams include sales from its branded retail stores, e-commerce platforms, and partnerships with various retail outlets worldwide. Additionally, BORG benefits from licensing agreements, which allow third parties to produce and sell products under its brand name, further expanding its market reach. The company's focus on branding and marketing, along with collaborations with athletes and influencers, also contributes to its sales growth, enhancing brand visibility and attracting a loyal customer base.

Bjorn Borg AB Financial Statement Overview

Summary

Bjorn Borg AB shows strong financial health with consistent revenue growth and profitability. The balance sheet is stable with manageable debt levels, and cash flow generation has improved significantly. However, operational efficiency and cash conversion need attention.

Income Statement

Bjorn Borg AB has demonstrated consistent revenue growth, with a TTM revenue growth rate of 1.43% and a strong net profit margin of 8.27%. The gross profit margin is healthy at 51.43%, indicating efficient cost management. However, there is a slight decline in EBIT margin from previous years, suggesting potential operational challenges.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.34, reflecting prudent financial leverage. The return on equity is robust at 23.43%, indicating effective use of shareholder funds. However, the equity ratio suggests moderate reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Bjorn Borg AB's cash flow performance is mixed, with a significant free cash flow growth of 185.90% in the TTM period, indicating improved cash generation. However, the operating cash flow to net income ratio is relatively low at 0.09, suggesting potential challenges in converting earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.04B	989.70M	872.26M	835.17M	796.10M	705.21M
Gross Profit	536.64M	520.65M	294.81M	424.51M	444.43M	369.98M
EBITDA	136.80M	133.98M	136.83M	109.45M	147.38M	64.90M
Net Income	86.73M	72.67M	75.97M	50.87M	86.03M	18.83M
Balance Sheet
Total Assets	754.05M	708.87M	631.52M	653.39M	680.67M	619.02M
Cash, Cash Equivalents and Short-Term Investments	12.50M	8.77M	26.65M	16.03M	96.74M	70.23M
Total Debt	180.53M	58.94M	42.85M	81.65M	135.95M	156.08M
Total Liabilities	368.76M	356.39M	280.71M	328.58M	346.45M	328.00M
Stockholders Equity	391.22M	359.36M	357.12M	331.41M	340.08M	296.31M
Cash Flow
Free Cash Flow	56.49M	61.99M	110.14M	52.18M	103.42M	133.62M
Operating Cash Flow	67.53M	76.04M	121.28M	60.50M	113.93M	142.58M
Investing Cash Flow	-11.04M	-14.05M	-11.14M	-8.32M	-10.51M	-8.96M
Financing Cash Flow	-53.01M	-77.86M	-101.55M	-135.94M	-80.12M	-90.31M

Bjorn Borg AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 60.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:BORG, the sentiment is Negative. The current price of 60.2 is below the 20-day moving average (MA) of 61.38, below the 50-day MA of 61.64, and above the 200-day MA of 57.60, indicating a neutral trend. The MACD of -0.34 indicates Positive momentum. The RSI at 45.92 is Neutral, neither overbought nor oversold. The STOCH value of 31.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:BORG.

Bjorn Borg AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOOZT	77 Outperform	kr7.23B	19.65	―	―	1.54%	72.94%
NELLY	72 Outperform	kr3.31B	23.11	51.02%	―	12.45%	118.98%
BORG	69 Neutral	kr1.52B	17.54	23.44%	4.98%	9.20%	11.72%
RVRC	69 Neutral	kr7.07B	24.64	23.71%	2.01%	6.44%	0.49%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SHOT	61 Neutral	kr20.74B	27.98	21.87%	5.22%	1.45%	34.85%
FOI.B	57 Neutral	kr6.32B	76.35	2.04%	6.33%	-2.98%	-30.48%